HP’s fiscal Q3 profits surge to $1.4 billion

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HP's fiscal Q3 profits surge to $1.4 billion

Hewlett-Packard (HP) delivered a solid fiscal third quarter with revenues climbing 5% to $21.9 billion year over year. Net earnings jumped from $73 million in the third quarter of last year to $1.38 billion in Q3 2006. According to chief executive officer Mark Hurd, general revenue growth as well as increased margins led the way to higher earnings.

The firm’s personal systems group (PSG) remains the largest business of the company with revenues of $6.9 billion but is outpaced by other parts in terms of profitability: PSG warnings of $275 million were topped by the imaging and printing group ($884 million), enterprise storage and servers ($296 million) and services ($364 million). Revenues for these businesses were $6.2 billion, $4.1 billion and $3.9 billion, respectively.

HP expects fourth quarter revenues to be about $24.1 billion, which would be a substantial improvement over the $22.9 billion the company posted in its fiscal Q4 2005.